How to Convert Leasehold to Commonhold in the UK

Leasehold and commonhold are two property ownership terms that can be a bit of a minefield. But with the UK’s leasehold reform getting a whole lot of attention throughout 2026, this could be a pretty pivotal time in how we go about buying and selling residential properties, including new leasehold flats.

While converting from leasehold to commonhold is something we would actually advise against for now, since the whole process is about to get a lot simpler with looming changes to the draft legislation, the concept of a share of freehold ownership is going to play a big role in all this. In this article, we’ll explore more about the potential reforms that make this all a bit less complicated.

When you own a leasehold property, you’re stuck with a limited time to live there, it’s just not the same as owning a property outright. Commonhold, though, gives you a share of the ownership in the building, not just your own home, which is pretty much like having freehold in the sense that you aren’t beholden to a freeholder. As you read on, you’ll learn when and how this can be done, what you need to qualify, the hoops you’ll need to jump through, and what the whole thing is going to set you back.

What’s the Difference Between Leasehold and Commonhold?

Before diving into the conversion process, it’s critical to understand these two models. Here’s a simple breakdown:

Aspect	Leasehold	Commonhold
Ownership type	Temporary, lease-based	Permanent, akin to freehold
Duration	Fixed-term (e.g., 99, 125 years)	Unlimited
Control and management rights	Limited, landlord-managed	Direct owner management
Responsibility for maintenance	Landlord, with service charges	Shared among unit owners
Common issues	Ground rent, rising charges	Reduced disputes over charges

Leaseholders of existing leasehold flats are increasingly exploring the commonhold route as a transparent and permanent property ownership model, seeking escape from common issues such as ground rents and service charges. The shift to commonhold flats introduces a comprehensive new legal framework that appeals to many, including flat owners eager for change.

Why Convert to Commonhold?

Converting to commonhold offers several benefits that are drawing interest amid ongoing leasehold reform debates, especially with the leasehold system under scrutiny:

• Full ownership without a time limit: Your property remains yours indefinitely, eliminating the need for new leases, including the lease extension statutory 90 years option.
• Greater control over building management: Collective decisions with other unit owners enable more direct input into property management.
• No ground rent or restrictive service charges: One of the key appeals of commonhold is the removal of these often burdensome costs.
• Simplified resale and mortgage processes: Without the complexities of lease terms, selling or refinancing can be more straightforward.
• Simplified ownership benefits: The UK government’s leasehold reform draft bill strongly signals a move toward supporting the commonhold system. As one govt source notes, “Commonhold returns power to property owners rather than landlords,” a sentiment echoed by the law commission, which plays a pivotal role in reinvigorating commonhold.

Why To Hold Off On Converting For Now

Converting an existing block to commonhold is still a real challenge under the current rules – which is one of the main reasons very few buildings have managed it so far. You’re usually looking for unanimous consent from the leaseholders, the freeholder and all mortgage lenders – and more often than not you have to buy the freehold first, which brings a hefty upfront cost and a load of complex valuation arguments about things like “development value”.

And on top of all that, the government has just published a draft Commonhold and Leasehold Reform Bill that’s aimed at making conversions a whole lot more accessible – by lowering the consent threshold and making it easier to set up mixed-participation buildings, for example. That’s alongside the Leasehold and Freehold Reform Act 2024, which is only being phased in bit by bit – so if you’re thinking of moving ahead right now you risk doing everything under an old regime that’s about to be overhauled.

For most lease holders, the best strategy in 2026 is probably to get prepared in the background – build some consensus in your block, get a handle on what the likely enfranchisement costs will be, and get your specialist advice lined up – then make a decision once the key reforms are actually in force and lender and market practice has had a chance to settle.

Who Can Convert from Leasehold to Commonhold?

To convert, you need to meet some pretty strict criteria:

• At least 50% of leaseholders need to agree: Getting a majority of leaseholders on board can be tough, especially in existing leasehold blocks.
• The whole building needs to be on board: You can’t do a partial conversion – it’s all or nothing.
• Don’t have too much commercial space: Buildings with commercial premises should be no more than 25% of the total space – and that includes any commercial units within the building.
• Clear up any legal issues: You’ll need to sort out any outstanding leases or disputes before you can proceed – and that might involve getting approval from the local authority.

These guidelines are framed by the Commonhold and Leasehold Reform Act 2002.

Step-by-Step: How to Convert to Commonhold

Embarking on the conversion journey involves several structured steps:

• Form a Commonhold Association (CHA): This should be a company limited by guarantee, representing all commonhold unit owners collectively. The establishment of a reserve fund is crucial during this phase. Ensure the association is registered with companies house to maintain legal compliance.
• Agree as Leaseholders: Secure consent from at least 50% of qualifying leaseholders and organize a decisive meeting or vote, key for converting existing leasehold buildings. Unanimous consent, while ideal, is not always necessary but can significantly streamline the process.
• Appoint Professionals:
  • Enlist a solicitor familiar with draft commonhold and leasehold laws, a crucial aspect of property law.
  • Engage a valuer for freehold valuation assessments, especially important for multi unit buildings.
  • Work with the Land Registry or a conveyancer for all necessary filings.
• Draft the Commonhold Community Statement (CCS): This document will outline all rights, responsibilities, maintenance terms, and procedures for resolving disputes, a key element in the commonhold model.
• File with Land Registry: Submit the application to register the new commonhold title, accompanying it with required fees and documents. This step involves transitioning the freehold title to the commonhold association.
• Finalize the Transfer: Complete document signing, dissolve existing leases, and officially transfer ownership to the new CHA. This may include issuing a replacement lease to formalize the change in ownership model.

Costs and Timescales to Expect

Planning for conversion requires understanding the financial and time commitments:

• Cost per flat: The expenses generally cover conveyancing, legal fees, and registration, typically ranging from a few thousand pounds upwards depending on complexity. Managing commonhold budgets effectively is crucial for financial planning.
• Influencing factors: Building size, the number of leasehold flats, and existing legal complexities can affect overall costs.
• Timeline: Conversion often takes between 6 to 12 months, though this can vary.
• Cost-saving tips: Consider sharing a solicitor among leaseholders or achieving early consensus to streamline proceedings.

Legal and Practical Challenges in Conversion

Converting can be a real headache – here are a few of the potential obstacles:

• Some leaseholders may not be keen: Not everyone may be convinced of the benefits of commonhold ownership, and you might get some resistance – which can cause delays. What’s more, commonhold unit holders need to be firmly behind the move to avoid disputes.
• Lenders may have requirements: Some lenders might have specific concerns or requirements around commonhold status.
• Disputes over management: Setting up new management structures can be a recipe for conflict.
• Old leases can be a problem: Unclear or outdated documentation can make it difficult to register and transfer the title – especially in long residential leases.

The government is working on streamlining these processes through ongoing reforms – and you can see that in the draft commonhold and leasehold bill, backed by local government initiatives.

Alternatives to Full Commonhold Conversion

If you’re not ready to go the whole hog, there are some alternatives to consider:

• Right to Manage (RTM) companies: This gives you control over property management without having to buy the whole freehold.
• Collective enfranchisement (buying the freehold): This lets you buy out the freeholder and become a shared owner – which can be a good move for long-term planning, especially if you’re in a multi-unit building.
• Proposed hybrid models: These might offer a middle ground between commonhold and the existing leasehold system.

Final Thoughts: Is Commonhold Right for You?

Converting an existing block to commonhold is still a bit of a major headache under the current laws, which explains why hardly any buildings have managed to get it done so far. You’re usually looking for all the leaseholders, the freeholder and all the mortgage lenders to be in agreement, which is rarely the case, and more often than not you have to buy the freehold first, which brings a hefty upfront bill and all the hassle of working out what it’s actually worth, including the tricky bits like “development value”.

On top of all that, the government has just put out a draft bill to reform how commonhold works, which is supposed to make it a whole lot easier to convert by, for example, lowering the hurdle needed for everyone to agree and making it simpler to set up mixed-participation buildings. That’s happening alongside the phasing in of that other big reform, the Leasehold and Freehold Reform Act 2024, which is taking its time to get fully up and running, so if you’re planning on pushing ahead right now you risk doing it all under the old system which is about to be overhauled.

For most lease holders, the best plan for 2026 is probably just to get yourself ready in the background, get everyone in your block on the same page, get a handle on what these enfranchisement costs are likely to be and line up your expert advice, then make a decision once the key reforms are actually in place and the lenders and market have had chance to adjust.

FAQs About Leasehold to Commonhold Conversion

How long does the conversion process take?

Usually 6 to 12 months.

Do all owners need to agree?

You need at least 50% of leaseholders on board.

What happens to ground rent and freeholders?

Ground rents are abolished and the traditional freeholder role is replaced by a commonhold association – which is a big improvement.

Can one flat convert on its own?

No, the whole building needs to be involved for conversion to go ahead.

Is commonhold recognised by lenders?

Yes, although some lenders may have their own requirements – and they may want to scrutinise things carefully before they agree to a loan.

Does it increase property value?

Yes, it can – because you get rid of the leasehold constraints and that can make the property more attractive to potential buyers.